Last updated on December 9th, 2024 at 10:27 am
Are you new to cryptocurrencies and looking to start trading?
This article is for you!
Choosing the right crypto exchange can be an overwhelming task for beginners coupled with the fact that there are 736 exchanges according to CoinmarketCap at the time of writing this article.
Going through each of these 730 exchanges to determine which is the best for you as a beginner isn’t a walk in the park. That’s why I have simplified the process to show you the best and the reasons you should consider in terms of location, trading fee, security etc.
Top 7 Crypto Exchanges for Beginners in 2024
Several popular exchanges offer user-friendly platforms and a wide range of features suitable for newcomers to the crypto space. These following are the best crypto exchanges or app suitable for beginners:
Note: There is no ranking order here.
1. Coinbase
Coinbase is one of the most popular and beginner-friendly crypto exchanges mostly for beginners in the USA. It’s by far the easiest crypto exchange to open an account in a few minutes.It offers a simple and intuitive interface, making it easy for newcomers to buy, sell, and store cryptocurrencies. Coinbase also provides educational resources, including guides and tutorials, to help users understand the basics of cryptocurrencies. According to CoinmarketCap, Coinbase ranks second as one of the Top Cryptocurrency Spot Exchanges scoring 9.8 as at the time of writing this article.
Below are the factors to consider while comparing Coinbase with other crypto exchanges in this article.
- Security Score: 5/5 (FDIC insured, cold storage, two-factor authentication)
- Fees: 1.49% for standard buys/sells, higher for other transaction types.
- Minimum Trading Amount: $2
Coinbase charges fees when you buy, sell, or trade cryptocurrencies. The fees can be between 0.5% and 4.5%. The exact fee depends on:
- Which cryptocurrency you are trading
- How much cryptocurrency you are trading
- Which payment method do you use
Coinbase has a spread-based fee of 0.5%. This fee applies when you use the simple Trade feature to buy or sell.
- It also charges fees based on your payment method:
- If you use a bank account or USD Wallet, there is a 1.49% fee.
- If you use a credit or debit card, there is a 3.99% fee.
The amount you pay in total fees depends on the spread fee plus the payment method fee. Different combinations of cryptocurrency, amount, and payment lead to different total fees.
Using Coinbase Pro will help you reduce the transaction fee. This is a cost-effective approach you can adopt if you trade frequently. Saving 1% will help you stay more profitable.
2. Gemini
Gemini is another excellent choice for beginners. It is a regulated and secure exchange that offers a clean and straightforward platform. Gemini’s focus on compliance and security makes it a reliable option for those who prioritize safety and trust.
- Security Score: 4/5 (FDIC insured, cold storage, industry-leading security practices)
- Fees: 0.20% maker fee, 0.40% taker fee based on a period of 30-day trading volume as seen on the Gemini exchange review (lower for high-volume traders)
- Minimum Transaction Amount: $10
3. Kraken
While Kraken is known for its advanced trading features, it also caters to beginners with its user-friendly interface and educational resources. Kraken offers a wide range of cryptocurrencies and provides detailed guides to help newcomers navigate the platform.
- Security Score: 4.5/5 (Two-factor authentication, cold storage, bug bounty program).
- Fees: 0.16% maker fee, 0.26% taker fee (lower for higher volumes)
- Minimum Transaction Amount: $1
Tip to note: Each cryptocurrency on Kraken has its minimum trade amount. For Bitcoin, the minimum is 0.0001 BTC. For Ethereum, the minimum is 0.01 ETH. Kraken does not state an overall minimum trade amount for the exchange.
4. Binance
Binance is considered the number 1 crypto exchange by ranking and it’s by far the largest and most popular crypto exchanges globally with large trading volume compared to other exchanges as seen on Coinmarketcap ranking #1. It offers a vast selection of cryptocurrencies and trading pairs, making it an attractive option for both beginners and experienced traders. However, Binance’s interface can be more complex than some other exchanges but it has a lite mode which a beginner can switch to pending when they can navigate the professional mode, so beginners may need to spend some time learning the platform.
- Security Score: 4/5 (Two-factor authentication, cold storage, advanced security features)
- Fees: 0.1% spot trading fee (Tip: You have the option to lower the fee to 0.075% by using Binance coin BNB to pay for transactions, and that gives you a 25% discount).
- User-Friendliness: A more advanced interface, may be challenging for complete beginners
- Minimum Transaction Amount: $5 USDT
Note: The Binance minimum trading amount was formerly $10 but it has been reduced to $5 as of the time of writing this article.
5. Cash App
Cash App is a mobile payment app that has recently added cryptocurrency trading capabilities. It offers a simple and intuitive interface, making it an excellent choice for beginners who prefer to trade cryptocurrencies on their mobile devices.
Security Score: 4/5 (Two-factor authentication, industry-standard security measures)
Fees: Cash App charges different fees based on how much crypto you buy or sell.
If you trade a really small amount under $10, the fee is higher at 3%.
But if you trade a larger amount over $5,000, the fee is much lower at only 0.75%.
So for tiny crypto trades below $10, you pay 3% fee.
For bigger trades above $5,000, you pay a smaller 0.75% fee.
The more crypto you buy or sell at once, the lower the fee percentage Cash App charges you.
Minimum Trading Amount: On the Cash App, the smallest amount of crypto you can trade changes based on how much total crypto you are trading.
If you are trading between $0 and $9.99 worth of crypto, this smallest trade is allowed. However, Cash App charges a higher 3% fee for these tiny trades under $10. When you trade larger total amounts of crypto, the fee percentage gets lower. With these lower fees, you can make even smaller minimum trades.
For example, if trading $500 worth where the fee is only 1.8%, your minimum allowable trade could be just a few dollars.
So in summary – very small crypto trades under $10 have a 3% fee on Cash App. But larger total trades allow you to make minimum trades of just a few dollars at lower fee rates.
User-Friendliness: Extremely user-friendly mobile app, ideal for beginners trading on-the-go
6. KuCoin
KuCoin has implemented robust security measures like two-factor authentication, cold storage, and a bug bounty program
With a flat 0.1% trading fee (lower for KuCoin Token holders), it offers very low fees compared to some competitors
However, the interface and features may be more geared towards experienced traders rather than complete beginners
Those without any prior crypto knowledge may find the platform a bit overwhelming at first, KuCoin has an easy interface for all users. It supports many different cryptocurrencies. KuCoin offers several features like:
- Buying and selling crypto right away (spot markets)
- Trading crypto futures contracts
- Lending crypto to earn interest
- Chances to win crypto in sweepstakes
KuCoin works hard on security. It requires verifying your identity. You must use two-factor authentication. All data is encrypted for safety. Most crypto is stored offline in cold wallets.
One important note – KuCoin does not have a license to operate in the United States. This may cause some issues or risks for users located in the US.
Overall, KuCoin aims to be user-friendly with many crypto options and features. But secure storage and compliance rules are also prioritized.
Security Score: 4/5 (Two-factor authentication, cold storage, bug bounty program)
Fees: 0.1% trading fee (lower for KuCoin KCS Token holders)
Minimum Trading amount: $10
KuCoin has different trading fees based on levels. For new users at Level 0, the fee is 0.1% per trade.
As you trade more on KuCoin, you can move up levels. Higher levels give you lower fees. For example, Level 1 has a 0.09% fee for making new orders and 0.1% fee for taking existing orders.
To get the lower Level 1 fees, you must either:
- Hold a certain amount of KuCoin’s KCS tokens
- Trade a large total volume of cryptocurrency
KuCoin also lets you pay fees using your KCS tokens. If you use KCS, you get a 20% discount on trading fees.
So the fees start at 0.1% but can become lower if you trade a lot or hold KCS tokens. Using KCS also saves 20% on fees.
7. Roqqu:
Roqqu has made its user interface very simple. This makes it easy for all people to use and trade cryptocurrencies. It does not matter if you know a lot or a little about technology. This might be a good choice for beginner trading crypto in Nigeria. The downside of it is that not all crypto is listed on Roqqu.
Roqqu’s interface lets you do many things like:
- Buy and sell crypto money fast
- Store your crypto money in a wallet
- Use your crypto to pay bills like electricity and TV
- Let businesses accept crypto payments.
- Save your crypto money to earn profits
Roqqu also has a mobile app. The app’s interface works well for both new and experienced crypto traders. It shows advanced charts for trading. You can buy, sell, transfer, and swap different cryptocurrencies easily on the app.
I’ve personally used Roqqu for 4years +. So, whether you’re just starting with crypto or already advanced, Roqqu tries to make everything simple. The easy interface helps people of any technology level use crypto.
Security Score: Roqqu prioritizes the security of its users’ funds by storing a massive 98% of its cryptocurrency holdings in offline cold storage wallets.
This ensures that even if the platform’s online systems were to be compromised, the vast majority of assets would remain safe and untouched.
Additionally, Roqqu has implemented a range of robust security measures to safeguard user accounts and transactions.
These include two-factor authentication requirements, multi-layered verification processes, passcode protection for the mobile app, and the ability to remotely disable phone access to the Roqqu application.
Through these comprehensive precautions, the exchange aims to provide a secure and trustworthy environment for individuals to engage with cryptocurrencies while minimizing potential risks and vulnerabilities.
Trading fee:
Roqqu has a simple fee system. You pay 2% every time you buy, sell, or swap cryptocurrency. This 2% fee is the same for all trades. When you deposit or withdraw crypto from Roqqu, there are no fees charged by the platform itself. However, you may need to pay network fees. Network fees are costs for sending or receiving cryptocurrency over the blockchain network. Roqqu does not charge these network fees, but they are required by the cryptocurrency network.
Roqqu makes fees easy with the same 2% rate on buys, sells, and swaps. No fees from Roqqu for deposits or withdrawals, but be ready for possible network fees.
Minimum Trading Amount: The smallest amount of crypto you can trade on Roqqu is different for each type of cryptocurrency. Every crypto like Bitcoin, Ethereum, etc. has its minimum trade size requirement.
To find out the minimum for the crypto you want to use, go to the “Deposit” area of your Roqqu account. There you will see the lowest amount you can trade for that specific cryptocurrency.
It is a good idea to always check what the minimum trade size is for the crypto you plan to use on Roqqu. That way you know the smallest amount you can buy, sell, or swap.
The minimums are not the same across all cryptocurrencies. So check the “Deposit” section before making any trades to ensure you meet the minimum for your chosen crypto.
Factors To Consider Before Choosing A Crypto Exchange As A Beginners
1. Security
Security should be your top priority when picking an exchange. Look for ones that use strong safety measures like two-factor authentication and cold storage for crypto funds. Regulated and insured exchanges are safest.
2. User-Friendliness
As a beginner, you’ll want an exchange with a simple and easy-to-use trading platform and app. Look for clear layouts, educational resources, and good customer support.
3. Fees
Different exchanges charge different trading fees. Higher fees eat into your profits. Consider the fee structure and try to find lower fees suitable for your trade sizes so that you can maximize your profit.
4. Crypto Selection
Some exchanges offer many cryptocurrencies, others just have the most popular ones. Consider if you want access to more coins and tokens as a beginner.
5. Payment Methods
Check what payment methods the exchange accepts for deposits and withdrawals. Familiar options like debit cards and bank transfers are convenient for beginners.
6. Location
Your country may restrict certain exchanges. Use domestic exchanges when possible to avoid any regulatory issues.
Conclusion
When it comes to security, Coinbase and Gemini lead the pack with top-notch measures like FDIC insurance and cold storage. For fees, Binance and Kraken offer some of the lowest percentages, especially for higher-volume traders. Coinbase and Cash App stand out for their simple, beginner-friendly interfaces and educational resources tailored for new crypto users.
When choosing a crypto exchange, it’s essential to consider factors such as security, fees, user-friendliness, and the availability of educational resources. Beginners should also research and familiarize themselves with the basics of cryptocurrencies, including key terms, concepts, and risks involved. Read also 22 Coins To Buy Now Before The Next Crypto Bull Run In 2024 to see good coins with promising future to hold.
Which do you prefer to use? Comment below.
